Loading Content...
Helena, Alabama: Stable Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Helena, Alabama, a vibrant city located in Shelby County, has experienced significant growth and development over the past decade. Known for its family-friendly atmosphere and excellent schools, Helena has maintained a consistently high rate of homeownership, averaging around 91% from 2013 to 2022. This stable ownership trend has occurred alongside a steady increase in average home prices and fluctuating average rent prices.
The homeownership rate in Helena has remained remarkably stable, ranging from 90% to 92% between 2013 and 2022. During this same period, average home prices showed a consistent upward trend. In 2013, the average home price was $189,770, which steadily increased to $342,594 by 2022, representing an impressive 80.5% growth over nine years. This parallel trend suggests that despite rising home prices, Helena residents have maintained their ability and desire to own homes.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), Helena's homeownership rate remained high at 90-92%. As interest rates began to rise more sharply from 2017 (1.00%) to 2019 (2.16%), homeownership in Helena remained stable, indicating the city's resilience to moderate interest rate increases. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight increase in average home prices, possibly encouraging continued high levels of homeownership.
Renter percentages in Helena have remained low, fluctuating between 7% and 9% from 2013 to 2022. Average rent prices have shown some variability over this period. In 2013, the average rent was $1,473, which decreased to $1,332 in 2015 before rising again to $1,502 in 2019. Interestingly, despite the city's population growth from 22,940 in 2013 to 29,027 in 2022, average rent prices actually decreased to $1,309 by 2022. This trend suggests that Helena has managed to maintain affordable rental options even as its population has grown, possibly due to new housing developments keeping pace with demand.
In 2023, the average home price in Helena reached $349,739, showing continued growth from the previous year. This trend persisted into 2024, with the average home price further increasing to $354,144. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, Helena's housing market has demonstrated resilience, with home prices continuing to appreciate.
Looking ahead, predictive models suggest that Helena's housing market will likely continue its upward trajectory over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $410,000 by 2029. Average rent prices, which have shown more volatility, are expected to stabilize and potentially increase at a rate of 1-2% per year, possibly reaching about $1,400 by 2029.
In summary, Helena, Alabama has maintained a remarkably stable and high rate of homeownership despite significant increases in average home prices. The city has demonstrated resilience in the face of fluctuating interest rates and population growth. While average rent prices have shown some variability, they have remained relatively affordable. These trends, combined with the city's continued population growth, suggest a robust and attractive housing market in Helena for both homeowners and renters alike.
